Edita Food Industries Reports FY2019 Earnings
Edita closes the year recording a 19.3% y-o-y rise in net profits to EGP 362.3 million in FY2019 driven by continuous product mix enhancement and improved gross profitability; revenues for the year grew 6.6% y-o-y to EGP 4,025.3 million.
Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange & EFID.L on the London Stock Exchange), a leader in the Egyptian packaged snack food market, announced today its results for the year ended 31 December 2019, reporting a 6.6% y-o-y rise in revenues to EGP 4,025.3 million. Net profit was up a solid 19.3% y-o-y to EGP 362.3 million in FY2019.
Top-line growth for the year was driven by higher volumes and improved price mix. All of Edita’s segments, recorded higher volumes for the year with the rusks, wafers and bakery segments delivering strong double-digit growth in revenues.
Edita delivered strong gross profit growth of 17.4% y-o-y to EGP 1,422.3 million, and a 3.3 percentage points expansion in gross profit margin (GPM) to 35.3% for FY2019, up from 32.1% in FY2018. On a quarterly basis, Edita’s gross profit recorded EGP 400.8 million in 4Q2019, with a gross profit margin of 36.7% compared to 35.8% in the same quarter a year ago.
On the exports front, Edita recorded gross export sales of EGP 343.5 million in FY2019, and contributing 8.5% to total revenues. On a quarterly basis, gross exports sales increased 16.2% y-o-y to EGP 104.4 million in 4Q2019, with the channel’s contribution to revenue standing at 9.5% compared to 8.2% in the same period of 2018.
Commenting on Edita’s outlook, Chairman and Managing Director Eng. Hani Berzi said: “We’re heading into 2020 ready to build on the foundations laid over the last twelve months to drive sustainable revenue growth and expand across the local and regional snack food markets. Locally, we will continue rolling out new innovative propositions that offer our consumers great value for money and best cater to their preferences and trends in tastes. In parallel, Edita will invest to further enhance its distribution capabilities to help extend our reach and grow our market share. Finally, on the regional front, we are making good progress with the buildout of our manufacturing facility in Morocco which kicked off in 4Q2019, and we expect operations there to commence during 2020.”